Bank of Madras
Encyclopedia
The Bank of Madras, one of the three Presidency Banks, the other two being, the Bank of Bengal and the Bank of Bombay
, was established on 1 July 1843, and was headquartered in Madras, now Chennai
. It is now subsumed in the State Bank of India
.
(1681-1687) and his Council in Madras established a bank. In 1805, Governor Sir William Bentinck convened a Finance Committee that recommended the formation of a government bank; the Madras Bank, which was sometimes called the Government Bank, began functioning from February 1, 1806.
The Bank of Madras was formed in 1843 as a joint stock company with a capital of Rs.3 million by the amalgamation of Madras Bank, Carnatic Bank (1788), the British Bank of Madras (1795), and the Asiatic Bank (1804). Bank of Madras had a branch network spread into all the major cities and trade centers of South India
, including Bangalore
, Coimbatore
, Mangalore
, Calicut, Tellicherry, Cochin, Alleppy
, Cocanada, Guntur
, Masulipatnam, Ootacamund
, Nagapatnam, and Tuticorin. It also had a branch in Colombo
, British Ceylon
, now called Sri Lanka
.
. The Bank of Madras, in the absence of any central banking authority
during that time, also conducted certain functions that are ordinarily a preserve of a central bank. These included managing the banking business of the Presidency of Madras and offices of the colonial government of India located in South India, and managing the Public Debt Office of the Government of Madras.
100,000 in 1895, building was designed by Col. Samuel Jacob, and suitably modified and adpted by Henry Irwin
(1841-1922), and constructed by Namperumal Chetty, a reputed builder, for Rs. 300,000. The building is an exquisite example of Victorian architecture. Currently, the building houses several Offices of State Bank of India
, Chennai.
. In 1955 the Reserve Bank of India
, which is the central banking organization of India, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955 the Imperial Bank of India became the State Bank of India.
Bank of Bombay
Bank of Bombay was the second of the three presidency banks of the Raj period. It was established, pursuant to a charter of the British East India Company, in the year 1868, about a decade after India's First War of Independence. The bank was headquartered in Bombay, now called Mumbai...
, was established on 1 July 1843, and was headquartered in Madras, now Chennai
Chennai
Chennai , formerly known as Madras or Madarasapatinam , is the capital city of the Indian state of Tamil Nadu, located on the Coromandel Coast off the Bay of Bengal. Chennai is the fourth most populous metropolitan area and the sixth most populous city in India...
. It is now subsumed in the State Bank of India
State Bank of India
The State Bank of India is the largest Indian banking and financial services company with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest...
.
Origin
In 1683, Governor William GyffordWilliam Gyfford
William Gyfford was an English factor and Agent of Madras from July 3, 1681 to August 8, 1684 and the President of Madras from January 26, 1685 to July 25, 1687.....
(1681-1687) and his Council in Madras established a bank. In 1805, Governor Sir William Bentinck convened a Finance Committee that recommended the formation of a government bank; the Madras Bank, which was sometimes called the Government Bank, began functioning from February 1, 1806.
The Bank of Madras was formed in 1843 as a joint stock company with a capital of Rs.3 million by the amalgamation of Madras Bank, Carnatic Bank (1788), the British Bank of Madras (1795), and the Asiatic Bank (1804). Bank of Madras had a branch network spread into all the major cities and trade centers of South India
South India
South India is the area encompassing India's states of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu as well as the union territories of Lakshadweep and Pondicherry, occupying 19.31% of India's area...
, including Bangalore
Bangalore
Bengaluru , formerly called Bengaluru is the capital of the Indian state of Karnataka. Bangalore is nicknamed the Garden City and was once called a pensioner's paradise. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and...
, Coimbatore
Coimbatore
Coimbatore , also known as Kovai , is the second largest city in the Indian state of Tamil Nadu. It is a major commercial centre in Tamil Nadu and is known as the "Manchester of South India"....
, Mangalore
Mangalore
Mangalore is the chief port city of the Indian state of Karnataka. It is located about west of the state capital, Bangalore. Mangalore lies between the Arabian Sea and the Western Ghat mountain ranges, and is the administrative headquarters of the Dakshina Kannada district in south western...
, Calicut, Tellicherry, Cochin, Alleppy
Alappuzha
Alappuzha , also known as Alleppey, is a town in Alappuzha District of Kerala state of southern India. As per 2001 census Alleppey is the sixth largest city in Kerala with an urban population of 177,029. Alleppey is situated to the south of Kochi and north of Trivandrum...
, Cocanada, Guntur
Guntur
Guntur , is a city and a municipal corporation in the Indian state of Andhra Pradesh, located to the north and west of the Bay of Bengal. It is approximately to the south of the national capital, New Delhi and south east of state capital, Hyderabad. Guntur is the fourth largest city in Andhra...
, Masulipatnam, Ootacamund
Ootacamund
Ootacamund , is a town, a municipality and the district capital of the Nilgiris district in the Indian state of Tamil Nadu. Ootacamund is a popular hill station located in the Nilgiri Hills...
, Nagapatnam, and Tuticorin. It also had a branch in Colombo
Colombo
Colombo is the largest city of Sri Lanka. It is located on the west coast of the island and adjacent to Sri Jayawardenapura Kotte, the capital of Sri Lanka. Colombo is often referred to as the capital of the country, since Sri Jayawardenapura Kotte is a satellite city of Colombo...
, British Ceylon
British Ceylon
British Ceylon refers to British rule prior to 1948 of the island territory now known as Sri Lanka.-From the Dutch to the British:Before the beginning of the Dutch governance, the island of Ceylon was divided between the Portuguese Empire and the Kingdom of Kandy, who were in the midst of a war for...
, now called Sri Lanka
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
.
Activities
The Bank of Madras undertook all the normal activities that are common to a commercial bankCommercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
. The Bank of Madras, in the absence of any central banking authority
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
during that time, also conducted certain functions that are ordinarily a preserve of a central bank. These included managing the banking business of the Presidency of Madras and offices of the colonial government of India located in South India, and managing the Public Debt Office of the Government of Madras.
Milestone
The Head Office of the Bank of Madras was shifted to a new building, on South Beach Road, Madras, in 1897. The site was acquired for Rs.Indian rupee
The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India....
100,000 in 1895, building was designed by Col. Samuel Jacob, and suitably modified and adpted by Henry Irwin
Henry Irwin
Henry Irwin, a renowned architect of British India was born on 21 January 1841, in Tarbett, County Kerry, Ireland. He is mainly known for his works in Indo-Saracenic style of architecture. He was a member of the Institution of Engineers. He died on 5 August 1922, at Ooty, India...
(1841-1922), and constructed by Namperumal Chetty, a reputed builder, for Rs. 300,000. The building is an exquisite example of Victorian architecture. Currently, the building houses several Offices of State Bank of India
State Bank of India
The State Bank of India is the largest Indian banking and financial services company with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest...
, Chennai.
Epilogue
The Bank of Madras merged with the two other Presidency banks - the Bank of Calcutta and the Bank of Bombay - on 27 January 1921 and the reorganized banking entity took on the name Imperial Bank of IndiaImperial Bank of India
The Imperial Bank of India was the oldest and the largest commercial bank of the Indian subcontinent, and was subsequently transformed into State Bank of India in 1955.-Origin:...
. In 1955 the Reserve Bank of India
Reserve Bank of India
The Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...
, which is the central banking organization of India, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955 the Imperial Bank of India became the State Bank of India.
Further reading
- THE EVOLUTION OF THE STATE BANK OF INDIA, Volume 1 — The Roots 1806-1876 by Amiya Kumar Bagchi http://www.hindu.com/br/2007/04/03/stories/2007040300301600.htm